Debt Management of Old Debts

skeane1973

Hi All,

My Stepdad has just died and I am trying to sort things out for my mum.

Basically they are in alot of debt (£60K) which they are paying of every week/month etc to 3 different Debt management firms.

I know this may sound horrible but even if my mum and stepdad both signed up to the Debt Management agreement, doesn't the Debt solely in my stepdads name become void upon his death.

Most of the debts seem to be for loans and credit cards, I'm currently going though all of the paperwork (there mountains of it) and would like to do things in the correct order.

At the end of the day if it has to be paid, I'll get it paid but if she doesn't have to then I know my stepdad wouldn't want her to.

Thanks in advance

Regards

Simon

rog2

Have a chat with National Debtline and CCCS for some legal clarification. There are links at the top of the page.
All the best
Rog2

immoral_angeluk

Debt that is solely in his name should be paid out of the estate. If there isn't any estate then they should write the debt off. His wife shouldn't have to pay off debts that aren't hers unless they were joint debts.

skeane1973

Everything that is worth anything ie House, Pensions, endowments (linked to mortgage), Life Assurances were all in Joint names (The probate people told me therefore it transfers to remaining person). The only thing really solely in my stepdads name is his Car (worth about £300) and his debts.

CLAPTON

probate people can only advise you about probate...i.e. about the tax situation ...so yes his property will transfer to your mother without a tax charge but the rules about debt are different. you need to seek specialist advice as some things (i.e. life insurance) may be written in trust and so are outside his estate but other things wont be.

Donedoingdebt

skeane1973 wrote:

Hi All,

Basically they are in alot of debt (£60K) which they are paying of every week/month etc to 3 different Debt management firms.


Regards

Simon

Do you mean they are paying off 3 sets of debt collection agencies or 3 debt management firms? If it's the latter, then I suspect they must be paying high fees to these companies. Personally, I would go straight to CAB, CCCS or Payplan & find out the legal situation regarding your original question & then sort out a DMP with just 1 of these.

skeane1973

It looks that way, I'm going through all of the paperwork back to 1998 to try and work out exactly where they are. I know they are currently paying 3 firms.

I will get onto CCCS etc and depending on their advise will definately for my Mum collate as 1. Or indeed pay them off directly to the debtor.

davek1

I agree with the op re estate etc. If your fathers estate has a value then all his creditors should share in that value. However if there is little or no value then the creditors should right off the debts. if the only main assett was the house and that has passed to your mother then i would suggest writing to each of the creditors by recorded deliver sending a copy of the death certificate and explaining that the only assett was his property which he jointly owned with his spouse. i would lay it on thick and explain that there are no other assetts available and ask them to write off the debts.

however if they are joint debts then your mother will be jointly and severaly liable for the debt in other words even though your father has passed away she remains owing the money. in this case i would still send a copy of the death certificate and explain the reduction in income etc and ask them to write the debts off. Some will some wont. those that dont re-negotiate the payments at a level that your mum can afford.

if they are with a fee charging debt management company dump them fast and move to CCCS or Payplan.

Dave

skeane1973

Cheers all for you help. Have sorted though everything and will be contacting the Debt Management firms today and have / will be arranging a meeting with CCCS to press on from here.

Thanks again

Simon